DCD Chairman Stephen Bone has made the following statement: “Given market improvements, poor weather and the situation on farm, we were unable to agree to a further price drop. If we are moving into a period of stability as suggested by some, history has shown that it's the final price move that can often be a step too far. We continue to work closely with Dairy Crest to the benefit of our members.”
As members of DCD, this creates a window for a reduced notice period should an individual member choose. Farmers should refer to your MPA or speak to DCD for further information.
NFU dairy board chairman Michael Oakes said: “It’s surprising to see yet another milk price drop by Dairy Crest, the clear cheddar market leader in the UK. This latest drop of 1ppl takes their May price below that of neighbouring cheesemakers Barbers (at 28.87ppl for May) and Wyke (at 28.62ppl for April). I can’t see any justification for this drop other than a need to follow the market down. Dairy Crest does not compete on the same markets as the larger UK milk buyers and require their suppliers to abide by stringent production standards. That coupled to the fact that the Milk for Cheese Equivalent indicator, MCVE, is now over 30ppl, the fact that milk volumes are stable or even below expected because of poor weather and the late spring mean this drop was unwarranted.
“Dairy Crest Direct are thus completely right in questioning this move, and entering deadlock with the company. The fact that DCD is a producer organisation allows it to negotiate on behalf of all its members in such cases as this, they can now advise members that if they so wish they could opt to terminate their contract by giving a shorter 3 months’ notice period.”